In the past, borrowing for all state governments and the Australian federal government was coordinated by the Loan Council, made up of state treasurers and the federal treasurer. Each state had one vote, with the federal treasurer holding a casting vote in the event of a tie. The federal government would borrow money from financial markets on behalf of all states, and the loan council would decide how much each of the state governments and the federal government would get.
Today, this system no longer operates. Each state borrows independently on financial markets, and there are no formal national limits on state borrowing.